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Investing.com - RBC Capital has raised its price target on MongoDB (NASDAQ:MDB) to $350 from $320 while maintaining an Outperform rating on the database software company. With a market capitalization of $17.57 billion and strong financial health score according to InvestingPro, MongoDB currently trades near its Fair Value.
The price target increase follows MongoDB’s strong second-quarter results, which featured accelerating Atlas growth of 29% year-over-year, better-than-expected operating leverage, and revenue, earnings per share, and free cash flow that exceeded expectations. The company maintains impressive gross margins of 72.89% and robust liquidity with a current ratio of 5.89.
MongoDB shares jumped 30% after the market closed following the earnings announcement, with RBC noting that strength was broad-based across both enterprise expansion and continued self-serve momentum.
Management raised its full-year guidance across all metrics, and while artificial intelligence workloads remain in early stages, MongoDB is benefiting from larger, durable use cases and continued expansion across its customer base.
RBC views the beat-and-raise quarter as a positive signal for execution, profitability, and Atlas durability into the second half of the year, with the new $350 price target implying 9.8 times calendar year 2026 estimated revenue.
In other recent news, MongoDB reported its second-quarter fiscal 2026 earnings, significantly surpassing expectations. The company posted a non-GAAP earnings per share of $1.00, well above the consensus estimate of $0.66. Revenue reached $591.4 million, exceeding the anticipated $553.94 million. MongoDB’s Atlas cloud service showed impressive growth, accelerating to 29% compared to 26% in the previous quarter. Operating income and free cash flow margin also outperformed expectations, with the latter exceeding consensus by 1,200 basis points.
Following these strong results, several analyst firms adjusted their outlooks on MongoDB. BofA Securities raised its price target to $345 from $275, maintaining a Buy rating, citing the company’s focus on large accounts with higher-quality workloads. JMP Securities reiterated its Market Outperform rating and a $345 price target after the earnings report. Additionally, Goldman Sachs increased its price target to $325 from $270, also maintaining a Buy rating. These developments highlight MongoDB’s strong performance and growth initiatives.
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